A pricing analysis of 50% of the fuel stations in the State shows that cuts in excise duty by the Government last March were passed onto customers, although not always immediately.
The analysis was carried out by the Competition and Consumer Protection Commission (CPCC) following 200 complaints from consumers impacted by rocketing fuel price increases.
As international oil prices rose in the wake of Russia’s invasion of Ukraine, petrol and diesel prices soared.
Last March, the Government decided to reduce excise duty on both products.
Excise on petrol dropped 20 cent per litre and diesel by 15 cent, but some drivers and politicians claimed reductions were not being passed on.
This sparked an examination by the CPCC.
The results of this examination has now published and finds there was effective price competition between fuel retailers during that volatile March period, but pump prices did not fall immediately on the day the excise duty cut came into effect.
It says the main reason for this was it took time for stations to receive new supplies of fuel taxed at the lower excise rate.
Speaking about the analysis, Chairperson of the CCPC Jeremy Godfrey said: “Pump prices did not immediately fall on the day the excise duty came into effect and it is understandable that consumers were concerned about this”.
He added that the delays varied from station to station because of different stock levels and delivery.
Mr Godfrey said that the Government should take these factors into account when announcing such changes.
“The experience of an excise duty cut taking time to work through to pump prices is also observed in other markets internationally,” he said.
“We recommend that policy makers take this into account when communicating with consumers about the likely impact of comparable changes in the future,” he added.
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